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Vertiv Posts Strong Q2 Results as Shares Fall 10%

Strong margin expansion, heavy cash generation and raised guidance signal a move toward higher‑growth, higher‑margin data‑center hardware and services.

Overview

  • Vertiv reported second‑quarter net sales of $3.27 billion, a 24% year‑over‑year increase driven by demand for data‑center power and cooling.
  • Adjusted operating profit rose 51% to $738 million and adjusted operating margin widened 410 basis points to 22.6%, reflecting better pricing and execution.
  • The company generated $1.1 billion in operating cash flow and $925 million in adjusted free cash flow, a 234% jump from a year earlier.
  • Management raised full‑year 2026 guidance to $13.8 billion–$14.2 billion in sales, higher adjusted EPS targets and $2.4 billion–$2.6 billion in adjusted free cash flow while planning roughly 4% of revenue in capital spending.
  • Shares fell about 10% in pre‑market trading even though Vertiv cited a strong backlog and $5.6 billion of liquidity while warning that some revenue timing shifted because of supply congestion and phased large projects.